Royal Lepage (Partners Realty Ltd.) sued the defendant, Ms.
Morrow, for $17,788.75 representing commission payable pursuant to
a listing agreement that Morrow signed with Royal Lepage.
Ms. Morrow entered into a listing agreement with Royal Lepage
and subsequently entered into an agreement of purchase and sale
with a purchaser that was brought to Ms. Morrow through Royal
Ms. Morrow ultimately decided not to proceed with the
transaction and Royal Lepage sued for the commission of the aborted
sale, which it argued it was owed pursuant to the terms of the
However, Ms. Morrow successfully argued before Justice Pollak
that the purchaser was also a Royal Lepage client and that the
broker had failed to disclose this information to Ms. Morrow prior
to presenting the offer to purchase to Ms. Morrow. Ms. Morrow
argued that in failing to do so, the broker had breached the
listing agreement thus disentitling the broker to the commission of
the aborted sale which to it would otherwise have been entitled to
pursuant to the listing agreement.
Justice Pollak agreed with Ms. Morrow and found that the
broker's failure to advise Ms. Morrow in writing of the dual
agency situation prior to the offer to purchase being presented
constituted a breach of the listing agreement, disentitling the
broker to nearly $18,000 in commission.
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